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tv   Countdown  Bloomberg  April 29, 2014 1:00am-3:01am EDT

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thep in the ante -- upping ante. a target list. first quarternk's beat estimates. >> more first-quarter earnings biggest energy company. we will speak to the ceo first.
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welcome to "countdown." i am mark barton. >> i am anna edwards. welcome to the program. bloomberg reporters are standing by across the world ready to deliver the stories that will drive a yard day. hans nichols it in berlin. expand theireu sanctions. ryan chilcote has a data store. >> earnings from samsung. breaking the news from the biggest energy supplier. >> last talk about the numbers. $15.8 billion. battles against an estimate. a comfortable beat. -- and that was against an estimate. course, the fascinating story to talk about at the moment is a business that operates in 41 countries. everybody including us want to
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talk about the relationship with russia. they have a cooperation -- which isth headed by the ceo. he has appeared on the sanctions list has published by western nations in the last 20 four hours or so. the company itself is not on the sanctions the less. we will talk to the ceo of statoil. that's how we are learning about thes sanctions and what it means for his relationship. .nd his relation with rosneft and whether he see the climate benefiting hit business. it is the second largest exporter. whether there are -- the geopolitical playing cow and what it means. we will be speaking to helge in
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a few moments time. 6:02. we have had earnings from deutsche bank. banker byt investment ravenel. first-quarter profits up by 30 four percent. trading revenue declines. honda nicole it in berlin with a details. -- hans nichols is in berlin with the details. beat.was a the big question on the earnings we were going to learn what the time for them to switch to plan b? plan a was no more massive capital. the answer is somewhat mixed. we have revenues down 34% on the previous year. it estimates a beat and if you look at debt trading, a crucial metric for the health of what is happening, you see other banks and get clobbered in this area. you see a clear beat. let me give you the numbers.
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last year, it was two point $7 billion. that admitted it was $2.1 billion. mark and anna, it is about a $300 million beat. it is not all bad. the overall numbers are down. we will learn more of the conference call whether or not there will be a share cell of $5 billion. of $5 billion. that is really the question. do they find the need to get more capital? would you look at here one ratio, -- tier one ration. at first it was 9.7. a slightly decreased. last year, round 6%. it is a healthier bank. the quarter was not as disastrous as many had feared. >> thank you. they said they raise 10 billion euros. inwe will continue to watch
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that story. the u.s. and eu have announced a new round of sanctions against russia. the eu have listed another six individuals. have targeted seven individuals. one of the most influential ceo.ts if the ryan chilcote joins us with the details. >> you have to save a very colorful character. a big personality. i saw him last year. interesting biography. back in the cold war days, he served alongside fighters and places like mozambique and angola. in the 1990's, he was and the saint peter berg's mayor office looking for deputy mayor, vladimir putin. putin brought him to to the 2000.n in as any sechin was called -- and then sechin was called to darth
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vader. he is part of the security service like a faction if you like inside of the kremlin. he said the deputy chief of staff. many said he was well above his weight. then president putin became prime minister and he became deputy prime minister. .e was chairman since 2004 then the government decide it is not a good to have a government officials also be the chairman of companies. he simply, when president putin came back to the presidency, he returned as the ceo. i should not say sellable. rosneft is the largest commercially traded oil producer. >> he has $20 billion stake. how tricky does a making? >> an uncomfortable position.
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sanctionednot been as an entity. the ceo has. we have seen this before. think about it, bob dudley, he has got a seat on the board at rosneft, those aboard meetings are supposed overseas. what does he do? at a u.s. citizen, can he go? bp came out with a statement saying they are committed to their successful, long-term plans and russia. they are reviewing the sanctions. some are saying a nonresponse. interesting to see what they will say today in a conference call. they are not the only ones who have to look at it. you have to look at statoil. sco cut the deal. -- and the ceo cut the deal. they put off the project until next year. after two weeks ago, telling us the project was going forward
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and they woodrow three well. for a company like statoil that offshore exploration, the arctic is a huge opportunity. if they want to that, there's a lot more than that. russians have access. companyis an important for them to deal with. they have to look at this very carefully. what does it mean? as a long-term project. this is a problem that would not go away tomorrow. but evaluating that relationship. out profits that beat out estimates. mia has the details. good morning. stocks are trading down and the korean kospi session. smartphones from samsung are being sold. fact it is that first quarter.
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net income it didn't beat analyst estimates. 11%, if you compare the same ame period last year, that net income raising. sales rising to 50 billion u.s. dollars. at 31 $.3es coming in billion. operating profit close to six point $2 billion. first-quarter operating units which is responsible for more than 60% of the company's profit is what we are focusing on. a couple of things at play here on samsung is really focused making sure that they get their product, the galaxy product out across the world and making sure everybody knows what these products are. >> samsung's lifeblood is a mobile. how much allocate for that division? time talking about
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this because it is interesting. if you compare them to dell's and coca-cola's, that i spend all of those companies. they have won the largest marketing budget in the world. a marketingen on spree. -- they have one of the largest marketing budgets in the world. they spent close to $14 billion last year on advertisers and marketing courting to borders. -- according to reuters. about 11 billion dollars u.s. dollars. they have outspend competitors. .45 billion in global advertising. that was up from last year. last year close to $4 billion. about 12% less than 2012. according to the large smart -- to the largest smart phone maker, they are reviewing their advertisements. apple, if you want to get a
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sense, they spend $1 billion. making less money for the quarter compared to apple, but you can see they are spending a lot more. >> thank you. >> coming up, we will speak to helge. that is next on "countdown." it is tuesday morning. ♪
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>> time for company news. nokia may sell jory. -- sell jewelry. the company has reported net income after taking a nearly $100 million loss in the same court. siemens will counter a bid against ge. they are bidding for the assets. they want access to information that ge has. they will have a board meeting. -- profits that beat estimates. ormance and power
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systems hurt earnings. >> welcome to "countdown." i am anna edwards. >> i am mark barton. earningsl reported that beat estimates. , joins uselge lund from the headquarters in oslo. thank you for speaking with us. you are in 41 countries. many people will be wondering about the state of your and howt with rosneft difficult you are finding it to do business in russia these days. can you update us on your relationship with rosneft? producing roughly -- [indiscernible] 30% of that. withg term cooperation rosneft.
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significanceg this of the u.s. sanctions to our operations. at this stage, with cannot comment on how it will impact our activities. we'll continue to comply with international sanctions which we expect from the eu. >> i know you said you cannot comment on what impact it will have all the business. you must know how much work involved to make it a relationship with rosneft. has anything you have read and the sanctions lead you to believe you have to suspend your relationship? >> at this stage, i cannot .omment further than what i did the significance of the sanctions. i will come back at a later date. >> are you traveling to russia?
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will you be attending the international economic forum? if that still important to your business -- is that still important to your business? at the moment, we are investigating the significance of the sanctions. we'll have to come back to applications at a later date. >> ok. has been put on the sanctions list. he is the ceo rosneft. you have had many dealings with him. what have those negotiations than like and in the past? have you had recent contact with him? >> let me say -- in the past few but i can only refer back to my statement earlier that we have to investigate the sanctions.
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i will come back with the implications later. >> ok. i understand it is going to take a while to review the latest sanctions from the u.s. and from the eu, but you have had time to jill -- to the changing geopolitical environment. how has it affected your business so far? >> generally, geopolitics play an important part in the energy industry. we have had to mention that. , when it comes to the sanctions, on that, when it comes to that, the gas markets in europe on the short term, the bad weather in europe, europe is well supplied. it comes to the longer-term ef c ect off potential conflict. it is too early to comment and make analysis on that.
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>> is a potential positives in and ability to fill the gap supplying further gas to europe where perhaps europe was to distance itself from a russia? would you be able to step in where the your pen to do not where thean gas -- europeans do not want russian as? >> we will continue. increase our supply. but in the longer term, russian -- [indiscernible] >> what should europe do to replace those russian of volumes? what is your advice? europe's energy policy from here? is important that europe generally works to make sure they have a diverse supply on gas.es to work
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has never, europe been better and more diverse especially due to emg. supplies from other countries. >> how much slack can norway pick up? you said that cannot replace russia. how much more can not wait -- can norway deliver? act of volumes. additional volumes that can norway can supply. we cannot compensate for long-term, shortfall of russian delivery. there are obvious sources as well to europe. lmgo you see a future for imports from the united states in europe? >> well, there is energy, it is
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gas supply of source. we see that in high demand. hopefully, and south america. if europe has to compete for energy, it will complement. >> thank you very much for joining us. helge lund. at the preliminary estimate of first-quarter gdp. the economy and respected to grow as a fastest rate in 4 years. ♪
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>> welcome to "countdown." i am mark barton. >> i am anna edwards. 6:24. -- time is is growing at the fastest rate in years. manus? the consensus estimate. you talk about the fact is growth. fifth consecutive quarter where we have to growth. that is in the winning stretch. since the financial crisis. and it will be strong. that is the view of the government and they have upgraded twice. and the imf, twice as well. they are saying unbalanced
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level. i said let's look at manufacturing and construction and services. technically, they all missed it or estimates. they are all improving and growing. they did miss their estimates. the economy is rebalancing. if you look at you are a month.er, look, 15th the cost of living is getting better for us. this is important. this the release fact in terms inrecovery -- ripple effects terms of recovery. decadefidence is at a 4 high. that is a pretty big number. and investment. this is criticallyant. rose.ng -- spending
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it is that level. that level of investment. if you have the confidence, quid pro quo. it is certainly a nice challenge for us to have. a four-year hiatus of the dollar. how much is it based on interest rate expectation? inextricably linked. the debate is do you want assets? markets are a much bigger. they said there is enough slack and will not get back until "normal" of five percent. the economist piped up from the other -- -- >> he does that. he said how can you have an economy growing at over 3%? fair, a very plain, vanilla point of view. do we have a hot -- e-house
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bubble? i do not know. veloper will join me later. >> more on the crisis in the ukraine and what has been at every action to international sanctions against russia. ♪
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>> welcome to "countdown." i am anna edwards. your fx check. >> where looking at sterling. -- we are looking at sterling. m&a boosting. they could be the best quarter since 2010. how long before the bank of england has to consider putting on interest rates? it could be a few months. that could be quicker than what many are expecting. the median forecast is $1.63.
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sterling is the best performing this month. >> thank you very much. these are the top headlines. the u.s. is taking aim at the russian president vladimir putin's inner circles with the lowest round of sanctions. they have added seven individuals and the 17 companies. one the most prominent individuals as sechin. the european union had 15 individuals to its sanction let's. london is bracing for commuter chaos will stop a strike -- chaos. -- a strike is underway. turkish prime minster has been speaking to charlie rose on the anniversary of the turkish conflict. he was turkey's first -- [indiscernible]
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he does not recognize them as genocide. >> it is such a genocide, it has been the case. would there living in this country? we have citizens who are transports. they are here in our country that have left armenia. the full watch interview with the turkish prime minister tonight on "charlie rose" 7:00 london time. >> additional sanctions against russia. the changes have little impact on the fx market. good morning. thank you. volatility within the fx market despite theows tensions. why?
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>> of not having a significant fx market.he the russian ruble is affected. impact from they those sanctions is expected to hit them the hardest. the implication is the market is willing to ignore that for now economiche potential implications of further escalation in the crisis for the european union. >> can russia do anything to soften? raised a rates. the second rate rise in a short space of time. can it stop the capital flow out of russia? >> they are discussing intervention. possible controls. it is not much in terms of what the officials have signaled. the volatility is increasing. the potential for the further weakness is clearly a worry for
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them. it includes any further measures. the russian central-bank has experience in managing the currency side. it will be the potential for that beyond that, capital controls could try to prevent any further escalation. -- have weve seen seen any impact and the krone? we welcome asking our guest if there will be efax on the economy. u.s. norway -- vizio is norway-- the view is could be an asset. it may be shifting westward. it has been a positive correlation between the stock norwegian.atoil and
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it has not been as pronounced. down the road, you would expect that crisis if it continues to gas impact on the norwegian and oil exporters and by implications of the norwegian crown. that impact might be strengthened that it does not have any liquid assets. , that prison is one such. from that point of view, not a positive. geopolitics may not be causing a of volatility. that is one of the themes. what about mergers and acquisitions? west seen a lot around m&a. is that having an impact? >> indeed. there is quite in and pat. very short-term. the news comes out and the market moves. then it is all forgotten. sterling has been attracting a
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lot of attention. we had the corporate flow related to vodafone deal. the market is digesting of the headlines. an impact. is having unfortunately, overall impact is short-term. the market is responding. within a couple of days, it has materialized. if anything, it could potentially grow. negotiations are attracting some attention. i think last week that was seen as a positive. the later development by siemens really playing a greater role in that dell. overall, i would agree. more corporate activity will affect the fx market. >> the two-day meeting. no forecast will be released. no press conference. no change in tapering to any point in discussing this or not?
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>> in march, the only meaningful change they discussed was the target for unemployment. advanced, adopted a broader measurement. the important thing was the statement itself was not as hawkish as the message. yellen'sck of janet comments and on the back of those dots. those media projections. if anything, the statement will get tomorrow will raise rates. in terms of statements, i perceive as more dovish or hawkish, i doubt it. exactly. that is really the upshot. the message was in the statement. from that point of view, any changes will address the fact that inflation was stronger than expected. cpi was stronger may be
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reflected by the significant change. >> paper is expecting a summit of the data developed as expected. they key point on the calendar this week from the fact is the payrolls from friday. the estimates are quite punchy. strongave to see a very current number. >> very strong. >> closer to 300. outside the range we have at the moment. and the jobless claims. there is a chance we could see something potentially closer to the top of the range of the estimates. distribution if you look at how the market is finishing its, to where the top side. a big way,ee it in you have to see a very strong number.
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>> thank you. good to see you. ofentin marinov head european energy 10 strategy. ceos alike on and making their own wine. how they stack up in a taste test. ♪ that is next. ♪
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>> among the decisions we have made collectively as a management team was to invest in china and not just plant the seed but a big trees that will hopefully yield enormous of growth for the company long-term well beyond my tenure. >> that was walt disney chief executive bob tiger talking about shanghai disneyland. time for company news. saideutsche bank, first-quarter profits fell after debt trading declined. net income dropped 34%. and that three months through march from the year earlier. they said they will sell at least 1.5 million euros.
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particular firm meet leverage limits. yahoo! is expanding into video content with 2 new comedy shows. they will be available on its website and mobile applications. mayer's efforta to turn around the struggling portal. they are announcing new programming. it will begin this summer. owners areis -- exploring. they are co-owned by a media group. sony and google. deal that valued the company at $500 million. >> welcome back to "countdown." i am mark barton. >> i am anna edwards.
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>> u.s. sanctions on russian companies individuals includes , the largest oil producer. a sneakhere to give us preview of the numbers we asked back. 3.22 billiong $ profit. we are expecting a dividend centsse from 9 cebts -- to 9.5 cents. today.own again after a while, it is really cheap on the back of the gulf. it seems to have lost a little bit of that charm it hat with investors. we have this problem with russia and their partnership with rosneft. >> significant investments in rosneft.
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they are not on the sanctions list. as we have been saying, the ceo is. we have seen in the past some individuals it here on the left and a companies later on. >> that is right. an uncomfortable position. not only do they have a 20% stake in rosneft but bob dudley, the ceo, has a seat on rosneft board for you have a u.s. citizen that supposedly overseeing sechin who is sanctioned. can he show up in the boardroom is one of the questions. but can he? is sitting somebody in between them. that is something the lawyers want to look at. rosneft, as a corporate entity, has not been sanctioned. bp will wonder where does it go? if the first round of sanctions and it may not be the last. the example you gave was 2
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brothers who partially on a bank called snp. they were sanctioned at individuals. and after that on the back of visa/mastercard declined they were compliant with sanctions to service the credit card holders of that bank. then, visa/mastercard change in their position because they got clarity from the treasury department. in this round of sanctions bank isd yesterday, snp sanctioned as an entity. where we are today where bp is today, the relationship with rosneft is not where it may be down the road. dayas the jets bp have one -- make it suggested that bp have one day? be.t may we spoke to somebody who said they what have to look at that. time is an issue. therey were to do that,
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would be guidance from the treasury department and the united states. access, yes, you will have to divest. we do not know. bp said they are looking at in the sanctions. >> they said it a few times. >> bob dudley will be on a conference call. we'll see if people stonewall the questions. everybody was to know this was. it is immaterial decision of bp. rosneft came out with their dividends. over year.se year that is fantastic for company might bp. they share in that treasure. if it will be an issue going forward, they will have to look at it. >> thank you. >> ceo of aig. kevin industries and hollywood's big fans are making their own wi ne. how do they compare with the to a taste test? we have a wine expert.
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we will see which one he thinks makes the best wine. >> ♪ as you can see, we have a lot of wind behind us. this is a 2010 advantage. one of the greatest vintages in napa. black raspberry, black currant. it is powerful. i could pretty in my cellar for 20 years. the highest rated wine in custody in my opinion is -- really good style and acidity. it was never a age. this all day and not even drink it. one of the great food wines. pixar, the label. one of the great things.
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they know something about making cartons and artwork. it is a blend of cabernet and merlot. cap actually done a great job blending the different grapes. that is what i am looking for. when the great things about win -- one of the great things about a wine if it is made all over the world. icy croatia making great wine. this is a unique wine. drink wine and ready to wine. andlina jolie and brad pitt wine. yes, it is true. not just giving their name away. you have to make sure it is quality. you cannot fool them, americans no wind. i love the color of rosé. -- americans know wine. i get asked, which one do you
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like better? i'm going to go with our director coppola. cheers. ofmaybe he has seen some france's coppola's movies and he's aware of not picking his wines. yes. ready to drink wine. that is a good idea. >> or the kind you do not have to drink. >> i can just smell it. >> the waiter of the best restaurant -- that winner of the best restaurant is? you have to wait and see. newspaper section is next. ♪
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>> welcome back. i am anna edwards. >> i am mark barton. world's bestd the restaurant. the copenhagen asian restaurant by the 50d the prize best restaurants academy last night. >> you cannot imagine how much you have done for our little restaurant. hell for our region. [laughter]
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you have fueled us with confidence. and you may it possible for me to work with all of these brilliant people that come from all over the corners of the world to work in copenhagen. look at it the newspapers as the let's pick up on that story with caroline hyde. in the studio with us. hans nichols is standing by. let's start with caroline. restaurants. >> the telegraph has the top 50 best. 100.ow the top amazing how much it dominates. pretty phenomenal. i mean, it is all about sebastian. the number two. -- in spain. 3 and the top 10. noma was number one. really become the trend in taste
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and vogue. that fury. in the top five we have a brick. -- brit. and the leveree. notable new editions. that is near me. >> the fat duck is three michelin stars. >> in the top 50. >> how they choose? >> one of the 11 -- notes. should be taking >> what have you got? >> news, mark you can use. cigarette butts. there is a charge.
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they never enforce it. they have a helpful table a what will cost you a fine. public urination is 20 euros. let your car idle unnecessarily, 20 euros was a throwing away your banana peel is 35 euros. let your dog walk without a leash is 35. letting go fireworks, 100. 's will tabulate mark vacation. [laughter] >> that is hans. pick up your banana. >> the barcelona player. thrown onto the pitch was not he picked it up and took a bite. the world is celebrated his gesture. holding the banana and support
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of temple to a great story. >> very nice. continues. more on the oil sector. just after a short break. stay with us. ♪
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>> upping the ante. the u.s. and eu announce a new round of sanctions against russia. >> we expect earnings out any moment from bp, the u.k. listed oil giant. >> deutsche bank first-quarter earnings beat estimates thanks to stronger third-quarter revenue from the investment bank .
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welcome to "countdown," i'm mark barton. is 7:00 here in london. ryan chilcote is on set with us to walk us through them. >> we were anticipating 3.2 at 3.2 and it came in billion. that is for first quarter. they bumped up the dividend to 9.7 five cents. they have shared a little bit with investors, more than we were anticipating. the question that investors will be asking themselves about the p when you look at the whole company is, as it gets smaller, is it getting more profitable? traction,getting good really getting their mojo back with investors at the end of 2013. at the end of 2014, they have a math --stment in roast
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rosnef. >> how does the news on sanctions against individuals layout? is listed among those sanctions. how is it going to play out for bp? >> it definitely is an uncomfortable position. they put a statement out saying they are reviewing the announcement from the treasury department. he remained committed as long-term investors in russia. many people would say, do they have much of a choice? they're thinking of their investment in russia with a ten-year horizon. they're hoping this blows over. rosnef as a corporate entity has not been sanctioned.
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bob dudley is a u.s. citizen. has someone on the board at questions thatre lawyers are asking. it is not an easy one. they have a conference call later in the day, but i bet it will sound like our conversation earlier where they say we are still talking to our lawyers. have seen a very solid art to 2014. their increasing the dividend. many investors will be asking questions about the relationship with russia. with that in mind, what are the latest sanctions that we have seen being implemented by the u.n. and that eu and others? an additional 15 individuals have been sanctioned.
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we expect to learn the names of them today. they did not make those names public yesterday. meanwhile, the u.s. has sanctioned seven individuals and 17 companies. they have upped the ante as well. they did name names. the most important name is the snef. he's a big personality. vladimir putin brought into the kremlin. >> they both have a secret service background, don't they? >> they do. he was in places like angola and mozambique officially as a translator and unofficially some people say he was a spy. he has never denied that are confirmed. he did serve alongside cuban fighters in one of the hotspots of the cold war in the 1980's in the southern part of africa. hard-lineof the
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faction that comes from the security services that is allied with president vladimir putin. that is one faction. it is also very progressive faction there. his been a very real force in the oil industry ever since he rosneft as chairman at in 2004. he simply became the ceo a couple years back, but maybe we shouldn't say simple. after all, it is the world's largest public we traded oil company. >> they were very generous in their dividend yesterday. >> e-government has been pushing state-controlled companies to up their dividend. they get a cut of the biggest stakeholder. the up there taking for the budget. rosneft'saying, shares are down over the year
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for 10%. >> thank you, we will stay with russia for the moment heard in the last hour we spoke to the ceo about the sanctions against russia. of statoilt the ceo had to say. >> we are investigating the significance of the sanctions. >> deutsche bank, europe's biggest investment bank by revenue just reported revenues an hour ago. first-quarter profit fell 34%. declined revenue from debt trading. hans nichols in berlin has the details. the rate of terrorists -- the regulatory bar on capital is going higher. there was talk today that may be
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that would be something announced. nothing up that nature has been released, has it? >> not so far in the conference call, just in the first two minutes. when you look at these numbers and take a step back, they are better than expected. it is a clear earnings and estimate -- when you look at the challenges the bank has, they have no idea what their litigation costs are going to be from a variety of inquiries, both in europe and the united states. it is a massive question. two, capital ratios and capital standards are changing. i was the one part of the back were numbers are little bit lower. the capital ratio down to 9.5% at the end of march. it was five point seven percent. i will bore you with some numbers and then we can get back to the macro story of deutsche bank. net profit down 34%, earnings fell by 11%. yesterday they announced that they would have 1.5 billion offering of the so-calledcoco
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was 1.0 onetimate billion and it came in 1.08. this is a silver lining. what they did for debt trading. it fell 10%, so not great, down all the way to 2.4 3 billion, but it was much better than expected. that 10%, compared with its peers, 13% was the drop throughout all the bank reporting that we had from the states. so 10% drop versus 13, that gets added. these aren't horrible numbers. we aren't good numbers but they're not as bad as they could have been. mark, and i? >> thanks, hans. we would check with you later. >> istanbul becoming the new go to city for hair implants of all things. we will have that story on hotshots when we come back.
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>> time for today's company news. nokia names a new chief
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executive. the company just reported first earner -- first-quarter earnings of 108 million euros after taking the same amount as a loss in the same quarter last year. preparationsking after gained access to information that ge had. the company is the world's biggest maker of power transformers. is had weak performance in its power systems units. welcome back to "countdown." i'm mark orton. >> let's take another look at the numbers coming out of bp. we are joined now by lead oil analyst.
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they haven't said much at all about the relationship with russia. they have a big investment in rosneft. see is that the current sanctions have not really impacted the oil companies. course, the ceo of rosneft is on the list. but that does not impact any trading activities that are going forward with his company and those like it right now. nothis case, there's problem yet since the company is not on the list.
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>> whether they are or are not on the list, bp must be asking themselves questions about their future in russia and where this goes from here. situationvisage a sneft. p gets out of ro >> i do have a large state so it does put them in a precarious situation. if they do get put on the sanctions list, then it could become more difficult for bp to make a decision whether it wants to stay in russia or not. it could be a difficult ,ecision, but as of now sides, we areoth keeping a close eye on whether the companies will really be put in the sanctions list. it will definitely have a big
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impact on the oil industry. will tread a little more carefully in putting sanctions on oil industry in this case. brent crude actually fell yesterday by 1.3%. oil hasn't moved too much. it was at 104 on april 2. it is at 108 now. it was at 116 in august. your crystal ball ahead of you. depending on escalating crisis in ukraine, what is your forecast for the price of oil? prices are driven more by the geopolitical risk factors than fundamentals as of now. around 106or oil is or $107 a barrel for the year. currently, oil has to geopolitical factors. one is libya and the others russia. we could see from yesterday's news where the new sanctions
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came in, that it did not affect the prices as much because the oil companies new it was there in the oil price. libya took away that premium from oil prices. libya is still playing a major part in oil prices. as far as russia is concerned, until we see sanctions being put on the oil companies, we are unlikely to see oil prices 110.ng beyond withstand it if it does occur? standcontinue to take the that russia is too big a player to have a similar set of sanctions that were imposed in a country like iran. it is one of the largest producers of oil and natural gas liquids coming to around 11 million barrels a day.
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the sanction on russia will definitely have a big impact, even though we are in an oversupplied market situation from other parts of the world. there would be a lot of disruption in the northwest african region that can really affect the supply immediately. >> the battle foralstom intensifies. who will win this tug-of-war? we will discuss that.
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>> welcome back to "countdown." i'm anna edwards. not a moment too soon. families packed up their pickup trucks with tents and goats and headed to the desert. milk fors extra rich their owners. thousands gathered in front of a poland. in krakow, screenedmedia show was on the wall of the palace of krakow. window now open
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known as the people window. turkey is fast becoming a major center for hair transplant operations, especially among men from middle eastern countries. treatments are up to 70% cheaper than in europe. of $2500.n average it takes six to eight months for the hair to start growing again. mark, that is hotshots. back to you. wouldmens said it consider a bit to counter general electric and what would be one of the biggest tugs of war for a french industrial company. david tweed is in berlin. when will we get details of siemens plan? >> we know there was a flurry of meetings in paris yesterday. the chief executive of siemens
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was there as well. they said after the meeting that there would be a board meeting today. ad exec be sure what time it is going to be. at that board meeting they're going to decide whether or not they're going to go ahead with lstom. i think is going to be a very interesting board meeting. really coming down to this question of whether to bid or unlike the pharma industry were you saw the this flurry of mergers, in the same sort of sense you see siemens by ge. being forced it is not convenient for them because they're just completing this massive great strategy review which will tell us the contours of his huge industrial company in germany. they're about to announce that
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next wednesday. for them, it is really a fly in the ointment. i'm interested to see whether tomy do get that bid for als coming from siemens at all. these giantsh of will have the chance of winning? >> according to people who are boardg to alstom, their is leaning more towards ge. there are couple of reasons for that. you have less industrial overlap that you would with the german company. ant for import francois hollande. for him the most important thing is jobs and maintaining operations in france. energy policy ways on the government as well. in germany you have an energy policy where they want to scrap nuclear. france you have nuclear supplying 70% of their electricity.
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the final if you look at all of this is it could come down to the politics. when you ask a have to sell one of these big companies, it could be easier for france to sell a siemens offered that it would be for ge. snubfrance really want to the united states? it is a balancing act there. >> and people think of monaco, they think of casinos, fast cars , celebrities, we with some serious bank accounts residing there. tom gibson reports. waves ofg through the cotes d'azur. >> this market is growing for people who have a yacht or a
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bigger boat and only want to have a useful boat to go out and party with family or friends. >> simplicity is key. for instance, have an easy-to-use joystick to steer the boat. and he untrained sailor can pick it up. without deriding the design behind the boat, the company has had to do a great deal to ensure sales. -- the company has not had to do a great deal to ensure sales. their business has flourished. d changed tack when it was looking for buyers. in bigger boats have all packages. they are going bigger.
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>> in some months we will have the biggest boat in our range. >> with a record for the biggest yacht being broken nearly every that there is only one way boat builders are likely to go. tom gibson, bloomberg. expected tomy is grow at the fastest rate in four years.
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>> let's get to jonathan ferro for the fx check. >> here is to market memo. qed is not imminent. that is what mario draghi told german lawmakers. the big one is inflation. today is crucial because we get german inflation.
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that is going to be a big focus. data is in focus for the euro-dollar. >> i'm mark arden in london. is taking aim at vladimir putin's inner circle. eu now -- they have added seven individuals and 17 companies to its list. if 48 hour strike is underway on the underground. more than 3 million journeys every day. -- thesh prime minister turkish prime minister speaking to charlie rose on the 99th anniversary of the armenian-turkish conflict. condolencese first over the mass deaths, but
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doesn't recognize them as genocide. if such a genocide had been the case, would there have been armenians living in this country? and alsooday citizens armenians in our country who have left armenia. we don't exclude them. >> you can watch the full interview tonight on charlie rose at 10:00 p.m. london time. about their capital increase. we are getting the pricing this morning. they're saying that they're offering new stock at six euros and 77 euro cents apiece. the rights offer runs from the second to the 14th of may.
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>> it is all part of the announcement in february when the company announced this 5.3 billion euro rescue land to fund new vehicles as part of that 14 stake apiece in dongfang. new warrants and setting up a santanderp with banco . >> the u.k. is expected to be the fastest-growing economy in the g7 this year. we will get an indication of how the growth is holding up when third-quarter gdp numbers are released later. about half ast mile away from the offices of where bloomberg sits. we are in the heart of the city of london. construction is the key. where the city road and a huge amount of property development.
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there's one man who has a lot of stake in is very area. almost three corners of a billion pounds at stake in terms of property and development. he joins me to talk about the u.k.. part of this spurt of growth that we haven't u.k. has to do with construction. you have been around for 20 it comes andbust, goes. this is a fast market area what you make of the scene that we have here in the u.k.? >> it is very exciting to see some much activity and so much employment and so much wealth being generated in london. as you intimated early on, we have some concerns about the pace of growth in the market. >> surely, it must be great. you have it thriving market. perhaps you'd like to see slower, more progressive market. would you like to see perhaps
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some intervention in the market to slow the pace down? very wary about politicians interfering in the market. long-term, it doesn't work. we're been going since 1991 and we have seen a lot of rooms and bust as you have said. the key to sustainability is more supply. fundamentally, london is really strong for housing market very great demand, not enough supply. we need more supply. debate, it of invokes the next debate which is, is the u.k., is the house bubble, are we seeing a house bubble or is that idiosyncratic to the london market? you're probably a prime person to answer the question. don't go outside london. this is a potential london issue and it is all about supply. >> the other debate is this, slack in the economy. reason we have record
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rates is this. we are being guided to stay as low for as possible as we can manage. is there slack? you hire, you're buying a people who actually construct these buildings. is a constriction of the supply of labor in your market? >> is getting more difficult, but it is still relatively widely available. london is an international city, very important we keep our borders open to bring in outside people if we can't get local people. we are able to find labor. costs are going up. in some senses that is a good thing because construction is a difficult business to be in. people deserve to be paid good money in it. >> you are right. i want to shift the argument along. we had a cup of coffee before this and you said london has become a truly international are pretty city. i want to understand what that means and what ramifications that has for the property market. when i came over 1988, london
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was one of a host of 15 international cities, if you like. by any record, london is probably one of the preeminent cities in the world, which has come a long ways since 1980 heard people want to live here, people want to invest here, there attract and here. built inment that gets central london generates between four and five jobs. there's a huge amount of wealth being generated. the downside is that house prices are very high. >> in terms of rates, interest rates, you and i remember paying your mortgage rate overnight at one stage of 15%. at 5.6%. are down to raise rates, where will people be able to live. >> i think something between three percent and five percent. the rating we have at the moment with this forward guidance, we have a bit more certainty. it enables us to plan our
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business and other businesses to plan there is. that is really important. high interest rates should mean that we have a booming economy. we have low unemployment and inflation becomes an issue. have raise capital very recently. was it an easy job, or did you still have to work hard to get the cash? >> we had to work hard. we are very fortunate. we teamed up with ares management. long-term relationships are very vil. tant to mount an >> the banks shifting? are they beginning to land again? >> it depends which side of the equation you are on that one. it is improving. >> great to have you with me this morning. i have to say. the single biggest mistake that ever made was not buying one of
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this man's developments a couple of years ago. that is a bit of a plug. absolutely stunning quality. >> you'll have a chance tomorrow. get there early. donner bay. thank you. >> i have to say, when you bring in a ceo who is been in that business for over 25 years. he still manages to get a plug-in about donner bay. >> a shameless plug. manus cranny, thank you very much. >> 7:39 in london. coming up, deutsche bank, europe's biggest investment bank reported earnings today. will the market be just as optimistic? countdown will discuss all things deutsche bank.
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now for today's company news. percent.even gazprom is russia's biggest
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company in one of the biggest suppliers of gas to ukraine. to video expanding content with two new comedy shows. it will be available on its website and through mobile applications. it is part of their ceos new strategy. they're announcing new from a television journalist that will begin this summer. owners is co-owned -- google acquired a minority stake , a deal thatyear was worth more than $500 million. back to "countdown." i'm anna edwards. we're joined by the head of
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and european research. phillipe, welcome. >> investment banking is that are then expectations. knew it was going to be a relatively weak quarter. on the earnings side we will have some relief. having said that, the crux of the matter for deutsche is that all eyes are on the balance sheet. the debate is still raging whether they should increase -- elsblatt -- >> our
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calculation is more towards 10 billion. all, one of the key metrics is coming down this quarter. changes in regulation and calculations is one. the other area that they lag is leverage ratio. they are reporting a number of 3.1% this morning. our number is closer to the low two percent. as a result of that, i think 10 crude and.more what they're doing in the fortime is issuing capital 1.5 billion euros. >> some investors have suggested that hybrid capital is good for european banks because it gives
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him flexibility to not pay some to their debtst investors when times get tough. others say, look at the u.s. example. it wasn't the great benefit that some had suggested it would be. what you think? >> i think the issue in this case is that you have to do the basic stuff. in the case of deutsche, they're trying to do hybrids before equity. >> where does this leave the german bank and the sector? what is that going to reveal about the strengths and weaknesses across europe? >> i think the quality review is having a profound impact. you see a lot of capital issuance of capital raising, particularly in the weaker economies in the south of
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europe. italy you have some issues going on. liquid banks have all come to the market. an encouraging sign for the ecb is that those companies six months ago but never have been able to raise that much capital and now they have access to the private market. that is not the vibe i get. reasonably going to be strong and robust. i don't think you will see any of the major national champions feeling those stresses. we will get some more information today on the scenario they're going to use. it will take time for us to figure out. is -- you areact seeing activity ahead of the stress results very >> is flux,al regulation in
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philippe? they won't want to go back to the markets a third time. >> i think the management team of deutsche has that concern. i think they do a more certainty on regulation. we are the point as well where can be explained to the market. today, to, especially say that we have come to the end of the journey. we have regulation investment banking. they said they're going to be buying out the minorities. you quite likely the managed their portfolio businesses, do you? >> i think they are smart. they issued a partial ipo at the
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peak of the emerging markets banking bubble. for aey're buying it back more fashionable price. ipocan see that the partial -- as you know the commercial banking valuations are quite hard right now. they are savvy at running their portfolio. >> from a credit and equity perspective, which banks stand out in europe right now? >> again, i think in europe today, there is a lot of value to be found in the intermediate ,art of the capital structures i think you have a continued trend across the banking system to hold capital, which is quite
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creditors.o the on the equity side, there are some very good stories and value stories today like archelaus, some of the french banks are quite cheap. 7:50 in london. i was the two nokia's new ceo. ♪
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>> welcome back to "countdown." i'm mark orton. europeanak to our business correspondent caroline hyde. nokia not quite what it was. 90% of sales comes from network overall. surprise, surprise. his new chief executive is the man who has been helming that for four years. he has been heading nokia solutions network for four years. he is been 20 years at the business in general, heading strategy, heading m&a. hitting the ground running areas today, we hear from him.
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sales were down by 15%. they're saying look, we're going to start using the money that we got from the sale to microsoft for a bit of a capital overhaul. 3 billion euros is going to go into dividend and share buybacks. he want to become investment-grade again. at the moment they are yields in terms of the debt/credit rating. the challenge is, how do they start improving revenue overall. how they tackle their bigger their chinese rivals are offering at cheaper valuations. handsets about the anymore, it is all about equipment such as base stations doing >> jonathan ferro is here. we will finish with gdp.
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let's start with german cpi. >> german inflation expected to take out today. recovery generally in prices? inflation will move back -- at least in the medium term. draghi reportedly said that qe is not imminent. it is relatively unlikely for now. we have amakers -- great story on that today. if we're not going to get inflation numbers that moves favoro target, it will euro shorts right now. estimate, a big one. could be the biggest growth in the quarter since 2010. someone -- >> as the fed starts two days worth of
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deliberations. >> is higher. >> thank you so much. "on the move" is next. that will do it for us today. >> yes, see you tomorrow morning. ♪ .
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>> welcome to "on the move." i am francine lacqua. hour, the chief executive officer gives us his first interview of the day after the company posted its 10th straight quarterly loss. when asked him if you're shifting strategy -- we will ask him if he is shifting strategy. at the start of european trading, our teams have everything covered. jointly not is caroline hyde and ryan chilcote and jonathan
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ferro. hans nichols joins us from germany. >> futures are hot. .t was the activity in m&a0 it will be about the data points. forronger gdp, a bigger day data and affects. >> it certainly well. we'll have to watch. you are watching bp sanctions. >> as a reporter first -- they reported results. they bumped up the dividend. their smallest increases the gulf spill. whattors on the whole like they are hearing. the big issue for bp is a they cannot catch a break. 4 years and nine days after the gulf spill him a they have a another big problem. it is called russia. >> hans, you

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